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Therapeutic DNA Vaccine Company Inovio Biomedical Reports Second Quarter 2008 Financial Results
Date:8/7/2008

ation of intangible assets, were $3.1 million and $5.5 million for the three and six months ended June 30, 2008, respectively, as compared to $2.3 million and $4.6 million for the three and six months ended June 30, 2007, respectively. The increase in general and administrative expenses for the three and six months ended June 30, 2008, compared to the same periods in 2007, was primarily due to an increase in outside consulting services and legal fees related to the negotiation and execution of the definitive merger agreement with VGX Pharmaceuticals, Inc., announced July 7, 2008.

Net Loss Attributable to Common Stockholders

The decrease in net loss attributable to common stockholders for the six months ended June 30, 2008, compared with the same period in 2007, resulted primarily from the increase in collaborative research and development revenue and the decrease in research and development operating expenses, as described above.

Capital Resources

We ended the second quarter of 2008 with cash and short-term investments of $8.1 million and working capital of $5.7 million, compared with $27.3 million in cash and short-term investments and $25.6 million in working capital as of December31, 2007. The decrease in working capital during the six months ended June 30, 2008, was primarily due to the reclassification of $12.5 million of auction rate security ("ARS") investments from short-term to non-current assets. The remaining decrease in working capital was primarily due to expenditures related to our research and development and clinical trial activities, as well as various general and administrative expenses related to consultants, legal, accounting and audit, corporate development, and investor relations activities.

With respect to the reclassification of ARS investments, we originally purchased six high-grade ARSs, issued primarily by municipalities, for approximately $13.6 million. In March 2008, our in
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